A little bit of yourself in this section. There are 3 three text graphics associated to this section; Subscribe me, Advertisements and About Me. I hope either one will suit your need. MLM, also known as Multi Level Marketing, can be a wonderful method for achieving your personal and financial dreams when combined with the power of the Internet.
This business model is used by hundreds of companies to move their goods and services to the end consumer. In this article, my goal is to provide you with information on what this industry is and what it is not.
I want to give you everything you need to make an informed, educated decision about whether or not this business concept is right for you.
Multi Level Marketing is simply a business model for moving products and services from production to the consumer using independent distributors with a multi level commission payout plan. Since distributors can recruit other distributors and establish teams that work together, this business model is often also called Network Marketing.
Unfortunately, many people do not understand how multi level marketing programs work and believe that they are some sort of scam or illegal pyramid scheme. Nothing could be further from the truth for legitimate MLM companies.
First you need to know that Multi Level Marketing companies are 100% legal and many large multi-million dollar companies employ this business model to move their products from production to the consumer. The pyramid shape associated with MLM companies is the same shape as almost all non MLM companies. There are always more workers in the lower ranks than there are senior managers, Vice Presidents, and CEOs. If companies were not of this shape, they would collapse.
Some of the best known MLM companies include Amway, Shaklee, Tupperware, Princess House, a subsidiary of Colgate Palmolive, A.L. Williams, Mary Kay Cosmetics, U.S. Sprint, MCI, Melaleuca, and NSA. These companies have been around for decades.
MLM is an explosive growth field and there are hundreds more MLM companies that, just like other companies, include some that are good and some that are not so good. Today, more and more Fortune 500 companies are even embracing Network Marketing for a portion of their marketing portfolio!
So why are MLM companies and programs becoming so popular? Well, the business model offers a wonderful opportunity for the “little guy” to start his own business on a part time basis with very little investment money upfront, but with a large income potential if she or he is willing to put in some work! Contrary to what some people would want you to believe, MLM is certainly not a get rich quick scheme and requires effort to grow your business.
John Paul Getty is often quoted as having said that he would always prefer earning 1% of a hundred peoples efforts than 100% of his own efforts. And that is precisely what Multi Level Marketing is all about. The Multi Level Marketing sales force members are not actually employees of the company, but instead they are independent distributors who are compensated for their efforts by commission based on the amount of product moved by not only themselves, but also by those whom they recruit as distributors.
As each distributor recruits others to become distributors, they create what is known as a downline and in addition to their own retail sales commissions, they earn a wholesale commission on the amount of products their downline distributors move to consumers. This process goes on for some designated number of levels and is where the term “multi level” originates.
The more recruits a distributor can get under them, the larger their downline and therefore the larger their total commissions. How many levels a distributor can earn commissions from in their depends upon the particular company’s compensation plan. Five to seven or more levels is not unusual.
A strong incentive is thus created not only for a distributor to recruit more distributors for their downline, but also to train them to move products as well. Thus a successful distributor will want to duplicate their success by teaching their downline members how to be successful. By making their downline members successful, they make themselves more successful.
Building large stable residual income is therefore the result of successfully recruiting, training, and retaining others. The better one is at doing these things, the larger their income will become. While it is not necessarily easy, it can be very rewarding.
Millions of people are discovering the advantages of being their own boss and working from home with the MLM business model. A basic computer, telephone, fax machine, a HUGE ambition, and the knowledge of how to proceed to grow your business are all it really takes! To learn how to properly build a MLM business online and learn some of the common Multi Level Marketing myths that cause people to fail in their Network Marketing businesses, click the links in the resource box below.
